my husband and I are looking for a house. And one house we found says owner will finance. What does that mean? Are we going through a regular lender or the owner?
2007-01-11 18:47:13 · 9 answers · asked by mellylaine80 1 in Business & Finance ➔ Renting & Real Estate
youll get the loan through the owner which in alot of cases can work out to your advantage esp if you have bad credit and you may even devolpe a good bond my parents had a owner finace loan sometimes you pay more in the end but just talk it over with the owner to make sure you arnt gonna be screwed.
2007-01-11 18:54:32 · answer #1 · answered by Jeff B 3 · 0⤊ 0⤋
Simple question. But it is one you must ask the owner.
Some people own their houses outright. They can sell the house to you any which-way they please. Every day houses are bought and sold for $1 (not to me, though...), and some people let you make a balloon payment somewhere down the road, or something like that.
Of course, owner financing could mean that they take out a loan on the place, you pay them, they pay the bank, or something to that effect.
Owner will finance = the owner becomes the bank. They give you a loan, allowing you to "own" the house and pay for it in installments. They're investing in you. Hope that helps.
2007-01-12 05:01:00 · answer #2 · answered by wood_vulture 4 · 0⤊ 0⤋
typically the owner fully owns the property and wants to make the interest as the bank would. BE SURE, if you do the deal this way, get an attorney of your own to look over the contract. Do a title search , make sure the "owner" has the right to sell, that no liens are on it.. A competent real estate attorney will make sure you aren't getting screwed. If the sellers won't let you see an attorney, run as fast as you can
2007-01-12 02:59:39 · answer #3 · answered by flutteredonby 2 · 0⤊ 0⤋
It's called a Land Contract or Personal Mortgage. Go for the Personal Mortgage. That means you will get a deed to the property which allows you freedoms to remodel, change the lanscaping, etc. You will get a mortgage note attached to it where you pay the person who sold the house to you. It's a good way to do it, better than a land contract which is restrictive in those areas.
Get an attorney to draft the papers and close the deal for you. Sounds good to me in a slow real estate market, these sellers are motivated to sell!
Good Luck and happy house-owning!
2007-01-12 06:48:11 · answer #4 · answered by Barbara 5 · 0⤊ 0⤋
It depends, maybe he will just finance the second so you can qualify for the first mortgage, and hold the 2 mortgage. You'll have to ask the seller for more details. For a property owner not to want to cash out, sends up red flags for me, but it could also be, that this house has real problems, and he can't sell in normally.....
2007-01-12 03:03:18 · answer #5 · answered by bizowner 1 · 0⤊ 0⤋
It simply means that the owner is willing to sell the house to you the same way a bank will lend you the money to pay f.or the house. He can match the bank rates for the best mortgage and take your payments directly.
2007-01-12 02:57:36 · answer #6 · answered by QuiteNewHere 7 · 0⤊ 0⤋
It means the owner of the property will finance you and you will get the loan through him.
2007-01-12 02:52:13 · answer #7 · answered by superken1974 2 · 0⤊ 0⤋
The note will be held by the owner, not a lender. Make sure you have it reviewed by an attorney you choose.
2007-01-12 11:19:41 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The owner is doing a rent to own deal. He may tell you that you would need a large down payment, get a mortgage. You may be better off.
http://1stmdhomes.com
2007-01-12 02:53:20 · answer #9 · answered by ron d 3 · 0⤊ 0⤋